Quality Stereo Company has provided the following information regarding its activity-based costing system: Each stereo produced has fifty parts,and the direct materials cost per unit is $70.There are no direct labor costs.Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders in all.What is the total cost for the 1,000 stereos?
A)$125,750
B)$55,750
C)$123,750
D)$122,000

Question

Quality Stereo Company has provided the following information regarding its activity-based costing system:  Each stereo produced has fifty parts,and the direct materials cost per unit is $70.There are no direct labor costs.Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders in all.What is the total cost for the 1,000 stereos?
A)$125,750 
B)$55,750 
C)$123,750 
D)$122,000

Quizplus · Accepted Answer

The Answer of Quality Stereo Company has provided the following information regarding its activity-based costing system:  Each stereo produced has fifty parts,and the direct materials cost per unit is $70.There are no direct labor costs.Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders in all.What is the total cost for the 1,000 stereos?
A)$125,750 
B)$55,750 
C)$123,750 
D)$122,000

Quality Stereo Company Has Provided the Following Information Regarding Its